Tenant Selection FAQ
How
to avoid legal trouble when choosing tenants
From
the Nolo.com Landlord and Tenant Center
What's
the best way for landlords to screen tenants?
Savvy landlords
should ask all prospective tenants to fill out a written rental application
that includes the following information:
- employment,
income and credit history
- Social
Security and driver's license numbers
- past evictions
or bankruptcies, and
- references.
Before choosing
tenants, landlords should check with previous landlords and other references;
verify income, employment and bank account information; and obtain a credit
report. The credit report is especially important because it will indicate
whether a particular person has a history of paying rent or bills late,
has gone through bankruptcy, been convicted of a crime or has ever been
evicted.
Is it
legal for a landlord to answer questions about a tenant's credit?
Creditors,
banks and prospective landlords may ask a landlord to provide credit or
other information about a current or former tenant. A landlord who sticks
to the facts that are relevant to the tenant's creditworthiness (such
as whether the tenant paid rent on time) is allowed to respond to these
inquiries. To be extra careful, some landlords insist that tenants sign
a release giving the landlord permission to respond to such requests.
How can
a landlord avoid discrimination lawsuits when choosing a tenant?
Fair housing
laws specify clearly illegal reasons to refuse to rent to a tenant, such
as rejecting an applicant because of her race, religion, ethnic background,
sex, age or because she has children or a disability. Landlords are legally
free to choose among prospective tenants as long as their decisions comply
with these laws and are based on legitimate business criteria. For example,
a landlord is entitled to reject someone with a poor credit history, insufficient
income to pay the rent or past behavior -- such as damaging property --
that makes the person a bad risk. A valid occupancy policy limiting the
number of people per rental unit -- one that is clearly tied to health
and safety -- can also be a legal basis for refusing tenants.
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provides information and general advice about the law. But laws and procedures
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